SECURITIES AND EXCHANGE COMMISSION
|
Washington, D.C. 20549
|
FORM 8-K
|
CURRENT REPORT
|
Pursuant to Section 13 or 15(d) of the Securities
|
Exchange Act of 1934
|
Date of Report (Date of earliest event reported): May 6, 2013
|
ProAssurance Corporation
|
(Exact name of registrant as specified in its charter)
|
Delaware
|
001-16533
|
63-1261433
|
(State of Incorporation)
|
(Commission File No.)
|
(IRS Employer I.D. No.)
|
100 Brookwood Place, Birmingham, Alabama
|
35209
|
(Address of Principal Executive Office )
|
(Zip code)
|
Registrant’s telephone number, including area code: (205) 877-4400
|
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
|
|
¨
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
¨
|
Soliciting material pursuant to Rule 14a-12 under the Securities Act (17 CFR 240.14a-12)
|
¨
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17CFR 240.14d-2(b))
|
¨
|
Pre-commencement communications pursuant to Rule 13e-(c) under the Exchange Act
(17CFR 240.13e-(c))
|
ITEM 2.02 RESULTS OF OPERATION AND FINANCIAL CONDITION
|
On May 6, 2013 we issued a news release reporting the results of our operations for the quarter ended March 31, 2013. The text of the release is furnished as Exhibit 99.1 to this Current Report on Form 8K.
|
The information we are furnishing under Item 2.02 of this Current Report on Form 8K, including Exhibit 99.1, is not be deemed to be “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934 (the “Exchange Act”) as amended, or otherwise subject to the liability of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of the general incorporation language of such filing, except as shall be expressly set forth by specific reference in such filing.
|
ITEM 7.01 REGULATION FD DISCLOSURES
|
In this item we are highlighting our disclosure, in Exhibit 99.1, that we have updated our online disclosure of our entire investment portfolio to provide details of our holdings through March 31, 2013. The disclosure is available under Supplemental Investor Information in the Investor Relations section of our website, www.ProAssurance.com. The direct link to the Supplemental Investor Information page is: www.proassurance.com/investorrelations/supplemental.aspx.
|
The information we are furnishing under Item 7.01 of this Current Report on Form 8K, including Exhibit 99.1, is not be deemed to be “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934 (the “Exchange Act”) as amended, or otherwise subject to the liability of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of the general incorporation language of such filing, except as shall be expressly set forth by specific reference in such filing.
|
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
|
|
99.1
|
News release issued on May 6, 2013 reporting results of our operations for the quarter ended March 31, 2013.
|
SIGNATURE
|
Pursuant to the requirements of the Securities Exchange act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
Date: May 6, 2013
|
PROASSURANCE CORPORATION
|
by: /s/ Frank B. O’Neil
|
Frank B. O’Neil
Senior Vice-President
|
For More Information:
|
Frank B. O’Neil
|
Sr. Vice President, Corporate Communications & Investor Relations
|
800-282-6242 • 205-877-4461 • foneil@ProAssurance.com
|
Unaudited Consolidated Financial Summary (in thousands)
|
||||||||
Three Months Ended March 31,
|
||||||||
2013
|
2012
|
|||||||
Gross Premiums Written
|
$ | 163,210 | $ | 170,448 | ||||
Net Premiums Written
|
$ | 150,053 | $ | 157,998 | ||||
Net Premiums Earned
|
$ | 134,578 | $ | 136,659 | ||||
Net Investment Income
|
$ | 32,126 | $ | 33,492 | ||||
Equity in Earnings (Loss) of
Unconsolidated Subsidiaries
|
$ | (223 | ) | $ | (2,066 | ) | ||
Net Investment Result
|
$ | 31,903 | $ | 31,426 | ||||
Net Realized Investment Gains (Losses)
|
$ | 26,680 | $ | 10,677 | ||||
Other Income
|
$ | 1,813 | $ | 1,809 | ||||
Total Revenues
|
$ | 194,974 | $ | 180,571 | ||||
Net Losses and Loss Adjustment Expenses
|
$ | 57,626 | $ | 70,199 | ||||
Underwriting, Policy Acquisition
and Operating Expenses
|
$ | 37,285 | $ | 34,398 | ||||
Interest Expense
|
$ | 371 | $ | 825 | ||||
Total Expenses
|
$ | 95,282 | $ | 105,422 | ||||
Gain on Acquisition
|
$ | 35,492 | $ | – | ||||
Tax Expense
|
$ | 22,334 | $ | 19,504 | ||||
Net Income
|
$ | 112,850 | $ | 55,645 | ||||
Operating Income
|
$ | 60,015 | $ | 48,226 | ||||
Net Operating Cash Flow
|
$ | (13,107 | ) | $ | 28,100 |
Earnings per Share
|
||||||||
Three Months Ended March 31,
|
||||||||
2013
|
2012
|
|||||||
Weighted average number of
common shares outstanding (in 000’s)
|
||||||||
Basic
|
61,708 | 61,177 | ||||||
Diluted
|
61,963 | 61,703 | ||||||
Net Income per share (Basic)
|
$ | 1.83 | $ | 0.91 | ||||
Net Income per share (Diluted)
|
$ | 1.82 | $ | 0.90 | ||||
Operating Income per share (Diluted)
|
$ | 0.97 | $ | 0.78 |
Key Ratios
|
||||||||
Three Months Ended March 31,
|
||||||||
2013
|
2012
|
|||||||
Current Accident Year Loss Ratio
|
82.3 | % | 86.1 | % | ||||
Effect of Prior Accident Years’
Reserve Development
|
(39.5 | %) | (34.7 | %) | ||||
Net Loss Ratio
|
42.8 | % | 51.4 | % | ||||
Expense Ratio
|
27.7 | % | 25.2 | % | ||||
Combined Ratio
|
70.5 | % | 76.6 | % | ||||
Operating Ratio
|
46.6 | % | 52.0 | % | ||||
Return on Equity (Excludes Gain on Acquisition)
|
13.4 | % | 10.2 | % |
Reconciliation of Net Income to Operating Income (in thousands, except per share data)
|
||||||||
Three Months Ended March 31,
|
||||||||
2013
|
2012
|
|||||||
Net Income
|
$ | 112,850 | $ | 55,645 | ||||
Items Excluded in the Calculation
of Operating Income:
|
||||||||
Net Realized Investment (Gains) Losses
|
$ | (26,680 | ) | $ | (10,677 | ) | ||
Guaranty Fund (Recoupments) Assessments
|
$ | (1 | ) | $ | (23 | ) | ||
Gain on Acquisition
|
$ | (35,492 | ) | $ | – | |||
Effect of Confidential Settlements (Net)
|
$ | – | $ | (714 | ) | |||
Pre-Tax Effect of Exclusions
|
$ | (62,173 | ) | $ | (11,414 | ) | ||
Tax Effect at 35%, Exclusive of Non-Taxable Gain on Acquisition
|
$ | 9,338 | $ | 3,995 | ||||
Operating Income
|
$ | 60,015 | $ | 48,226 | ||||
Per Diluted Common Share:
|
||||||||
Net Income
|
$ | 1.82 | $ | 0.90 | ||||
Effect of Adjustments
|
$ | (0.85 | ) | $ | (0.12 | ) | ||
Operating Income Per Diluted Common Share
|
$ | 0.97 | $ | 0.78 |
Gross Written Premium (in thousands)
|
||||||||
Three Months Ended March 31,
|
||||||||
2013
|
2012
|
|||||||
Healthcare Professional Liability
|
$ | 142,416 | $ | 151,106 | ||||
Legal Professional Liability
|
$ | 8,072 | $ | 5,699 | ||||
Medical Technology and Life Sciences
|
$ | 5,885 | $ | – | ||||
Extended Reporting Endorsements (All Lines)
|
$ | 6,319 | $ | 13,197 | ||||
Other
|
$ | 518 | $ | 446 | ||||
$ | 163,210 | $ | 170,448 |
Business Detail
|
||||||||
|
||||||||
|
||||||||
|
||||||||
|
||||||||
|
||||||||
|
||||||||
- more -
Page: 3
NEWS RELEASE CONTINUES
Net Losses (in millions)
|
||||||||
Three Months Ended March 31,
|
||||||||
2013
|
2012
|
|||||||
Current Accident Year Net Losses
|
$ | 110.7 | $ | 117.7 | ||||
Prior Accident Year Net Losses
|
$ | (53.1 | ) | $ | (47.5 | ) | ||
Net Losses
|
$ | 57.6 | $ | 70.2 |
Investment Commentary
|
|
|
|
Balance Sheet Highlights (in thousands, except per share data)
|
||||||||
March 31, 2013
|
December 31, 2012
|
|||||||
Shareholders’ Equity
|
$ | 2,361,043 | $ | 2,270,580 | ||||
Total Investments
|
$ | 4,318,352 | $ | 3,926,902 | ||||
Total Assets
|
$ | 5,218,746 | $ | 4,876,578 | ||||
Policy Liabilities
|
$ | 2,540,053 | $ | 2,334,446 | ||||
Accumulated Other Comprehensive Income (Loss)
|
$ | 137,626 | $ | 145,380 | ||||
Goodwill
|
$ | 161,123 | $ | 163,055 | ||||
Book Value per Share
|
$ | 38.19 | $ | 36.85 |
Capital Management
|
|
Conference Call Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
M?&'X&^!_B#K7PB^,?C?X;ZKX MBCO_`"/%&B:CX?U6XLG5-5LVCGC25(X;R.!G9`ETA*L22?C'_@DM\#_'/[#/ M_!0+]O+_`()_^#?B=XW^*/[)'PY^&/@;QO\`#&U\;:A]MG\(ZGKTERO]EF10 M$CDDAMI7946-94AAE**[N6_4#6?^";W[,'_"5ZQX]^%^E_$']FWQWXH,A\;> M+/V8_BEJ?@>?Q$SSR3M)J\-E,L%_/YMQ,WVBXB><%R!(!Q7O'P!_9H^#G[,V M@>(="^$OAJ[TZY\:^(Y-:^(7C#Q)XBN]=\1^)=:D14>_U?5KV66ZO)RD:(&E MD8(BJB!$55`!^(?_``1$%CX"_:__`."UWP2UJY&G^/=(_;GNO$B>'M0=8KR; M0=3-R]G>I&3N:%U*'>`5`ECY^<9^^_\`@L?)'J/_``3H_:(^'MHPN/&'QKT[ M1_`OPS\/PD-=:OXFUW5+6ST^SMHLYDD:2;>0H)6..1S\J,1['\=/^"?'[,7Q M]^*FC_'SQ!X8\5^`?VA-`TA=.TSX]_!#XC:GX*\7'3AP+2XO].GB-W`!@".Y M$J@````8K<^''[$OP7\`>.]`^*>L7_Q4^-'Q.\(0W,?@GQU^T#\6M4\97>@+ M<(4G;2H;R9K>QEDC+(TUO#',R,R,Y5F4@'E?_!5*,6'_``3!_;@MY74_9?V4 M?%T3.BG!8:9(O`],U^$5W_P37\:_'[_@C/\`L6_&?]G3Q=\2M?\`C7\+O@%X M3\81_LW?$?XD:KXG^&7Q%AM[9+BZT2^\+7ER]F#*H;R$ACCCW`1%0'62+^E[ M]I?]E/X0?M<>"U^'/QN@\=ZQX"FANH=:\(>%/BIK/ANPU>WN%59(-2BTZZA% M[#^[7$<^]%))`&3F#]FG]DSX/?LC^%6\"?!%/B%I'@:'3K.ST3P9XK^+FM^) M-+T>TMO,\J'3+;4;N9+*/]\^Y8`@;";L[%P`>#?\$O?VSO@9^V[^R/\`#[XD M_!'PWX>^&B>&[--"^(7P-T&PBL5\$:_;*/M.F"UC1!'!D^9"P10\,B'"MO1? M)+3P;XL_;+_;4^,?Q7\(_&KXA?"'P%^QO9S?"?X9Z_\`#G3=%O6U7Q9?K:ZA MXVN"-5TZ[15@,>@:<'B1'$MI?(7()6O4K+_@E3^QAX>^*_Q-^-OP\\'_`!*^ M#GQ(^,FLRZA\2];^"'[0/BCP=#JUU(Y>1YK33M1A@^:5Y9"`@`>61A@NQ/L' M[,_[$7P%_9$FUS_A1=O\3=`TOQ'-J%QJWACQ'\;_`!#XBT>34+ZZ%U>WXL=0 MOIH5O9YP7DN542N7?RM[E8_[)EG_LNPM(#%&S+/N>-G"Z &");* MZF?4S+<64:VD+1VLKM#&^YU0,[$@'3?MT_L/?`__`(*&?L\>(O@1\9M-)L=4 MC%]X#\=:;;J=6\,:XJ$6NIV#MC#IN(:,D++&SQO\K''X2?L4?M'?M2>%OVW? MV1?^"8/[=FEZMK?[1?[+'Q$\7ZW\./CW"K3:9\0_AL?!.N6=EJ+3O\[W*/-# M&9#EG`=9MMQ#*9/Z:?A9\-/#WP?\":!\.O"E]XOU'P]X:@DBTJX\=^.=0\2: MF(FD9PDFH7\TMQ*J[MJAY&V(JJN%4`8GB_X%?"GQU\4OA)\:_$W@_3K_`.*G MP-EUD_#'QLNZ*^TV'5;)[34+?>I'F030R#=$^Y-\<;@!D4@`_F^_X*&>+9O^ M"=7_``6[_97_`."B'Q&M;^+]EK]H#X0M\+OBOX\2S,EKX;U$-*$DN&56*(`= M.N>FYXK:\V!C'@_U%:+K>C>)-'TOQ#X=U;3-?T#7+"&[T77-%OTN[.\M95#Q M3031DI)&ZL&5E)#`@@D&N1^*?PG^&?QP\!^(?A?\8/`?A3XE_#SQ79FW\0^# MO&FB1:AI]U'U&^*12`RG#*XPR,`RD$`C\X?"G_!&/]C/X?*^C_#/5_VJOA?\ M.Y;AW?X._#G]LWQIHWA,(YR\26$&J*(XVR
V6AVKW5KH2W#A;6VU"[13%;WDZ^9+':NPF:&-I=@0 MJS?SG?!#X'?![X\?\'!/_!4_PQ\:?AOX.^)FAZ7\!?AS=Z5HWC31H[Z&"=K# M3D>6.-P<,4(!8=B/6OZ'/AY^SU\'?A!\*;KX*?"+P38?"SX>WEA?0RZ;\/KF M72KOSKN,I<7GVZ)Q<&^?.XW9D-P7` `?V8O\`@DA^S?\`'/Q'+K\7@;X`#XN:YXTTOPM9Z2!_95SK3VZQZ#H]M&2] MU)->J4MX5'F.]RL2C"K7Z$65V+RTL[HP7%F]W:1S?8KV,1SQ!@#MD7)PPS@C M)P:^`_$7_!,/]D[QSXZ^&/Q$^)NG_&CXN^(_@YXTL?$7PZB^+W[3'BSQ/ING M:S9RB6VNAI][J :RE"2P[?>H`^HZ***`"BBB@`HHHH`*_)G_@M MW^RV_P"U=_P3?^/WA72=-_M'QS\,](3QW\.HXUS*=3T,-/-%&,9+SV/V^W`' M),XK]9JBG@AN89K:YABN+>XB9)X)HPZ2(PPRLIX(()!!Z@U%6FJM-Q>S.#-, MOHYMEM7"U?AJ1<7\U:_RW1_C1(ZR(KH=R.H96'0@]*=7W?\`M\_L@>*OV:/V M\/VB/V8O"'A'Q+K\'A;XC7%Q\.-&\.Z'/J%W/X9U("\TC9%"C,^VUN8HC@'Y MXG'4&O>?V<_^"'G_``4R_:3N;"71?V<-?^%/A>]\MI/&OQ]N!X3LXHFQ^\%K M,IO91@Y_=VS9%?'*E5E/E2;:TT1_`\>%>(*V95,)1H2G.$G%\L6[-.SUM8_) M?UR0``22>`!7]@O_``;&_P#!._XC6_Q#U;_@H1\3M`U'POX#M?!=_H/[/EMJ MMNUO<:]<7Q1+_5XD8`FRC@C>WCDQMF>>4J2L0+?=O["/_!LW^S5\!-1T3XB? MM9^*%_:F^(FF217%IX&_LIM.\!V-RI)'F6;,TVI%3M(^TLL+8^:W/%?TR65E M9Z996FG:=:6NGZ?I]K'!86%E;K%!!`BA4CC10`J*H`"@````5[&!RVI&:J5- M+;+_`#/W_P`-O"+&Y3F$,QS)I3AK&"=[/HY-::=$KZ[OH[5%%%>X?T0%%%%` M!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`?)WBW]KOPGX(;4Y_$ M/PP^-UOHME\4K?P=IGB:V\#1S6&JZU<7J6-LMD1<;WBENY5A65D5-X.2%&ZO M7/AY\5[;XA:SXOT`>!_B-X+U'P8-/:_7QYX<6QCNDO$D>-K21)768*(F#D'Y M6(!YSCY4_P""BGB[0?"?PR^"+Z]K>CZ);ZA^V)\)E,^KZE';((HO$MG-*^78 M?*B1EF/15!)P`34/CC7_`!3XP_;@M_A/IGQT\:^%/"EI^S=H_C'3O`?@G6=, MM_[4U*V\02+)&SS6LDI@N+>..*4(P)C;*LF22`?H-17X\_"K]IR]UWX.:W^T M%XR_;`\/>&=9T?X2:]&3X1Z?X)34]6\):W%>1"4RZ3+=%[233&6>T"M$D< MXECEG+X4MYUXD^.NM:[X$^(WAF;]HWQSX7T/X>?\%!?A]HX\8VOQ,TB37-+\ M$:Q'I,SMJ&I6ZR0M8FYU"[\N5RT8VI"[R")D(!^Y=>)?'KXR_P#"CO"?AWQ6 MW@[5_&<.O?$WPQX:DL]'U""V>T?6M1AL8;J0RL-T4 *_@O_P`-=:/\++?X>:#X"O\`X->(/&KVU]?>.=(N46:_U.*03P6^ MK- ?"NE>,_&VB^,M4T'5?%FEZ(MQX.T,:A)!?ZC :[INF_LNZ>9O$FB^'9-4^/GPN32]8U2Y MA$<3#Q9IKF=$D=5E$2*92I.W8C%B%!(T/BGXA\3_``QLO#^A_%7]IW6+E?C; MX^FLOA_=>"="TWPW=W-O'H4TPL(-3GF%I8D2V\UW]I9C)/A($4YVL`?:FK>/ M/"NB>+_"/@/4]2>V\5^.[34[CPKIBZ;/(MS%IZQ-=L9DC,<6Q;B(XD92V[Y= MV#CBOC?\8;7X)>%_#GBB^\-:MXFMO$/Q-\+^&3!I%U!"UI+K>I0V$%U*977, M4 %."1\"_`W]HGQ3\2-:_X)VW^J?'*UOV^+7[._C&Y^)^A:/J>F MFUU77]/L],VW$H2/ !5\[>[C9`I`C4&@ M#]T:*_-WPU)\6!^TCX[_`&=-;^*'Q5N[:'Q_I7Q)\&^,DO8%0_#F:T>&;0VE M6#81'K,#P[3^_>VG1]^8R:_2*@`HHHH`****`"BBB@`HHHH`IQZ=I\5[<:E% M8V<6HW<21W=_':JL\L:9V*[@98#)P"<#-7***`2ML%%%%`!1110`4444`%%% M%`!1110`4444`%%%%`!1110`4444`%%%%`!1110!B:QX:\.>(3;MK_A_1-<: MT25;4ZQI45T8ED`$@3>IVA@`#CJ`,YID?A;PQ#?6FJ0^'-!BU.PB2.QU&/1X MEG@C5/+58Y`NY0(R5`!`"G'3BMZB@#G_`/A$_"HGURZ'AGP^+KQ/`(O$MS_8 MT/F:C$%*A+EMN9EVDC#YBH'\$^#)+/4M/D\(^&)+#6;*"UUBQ?0(##=VT* M[88ID*8D1%X56!"C@`5T]%`&'/X8\-75SHMY<^'=#N+OPUD>';J?2(GET\%0 MI^S,5S%\H`^3'`Q5/4?!'@O6+^?5=7\(>%]4U.ZAABN=1U'P_!/<21Q.'B1I M&0LRHX#*"<*1D8-=110!BZMX;\.Z^EK'KN@:+K4=BS&RCU;2HKE82R[6*!U. MTE20<8R#BI+G0-"O;73K&\T72;NRT>X@FTFTN=-CDBM9H1B%X4*D(R#A2H!7 MMBM:B@#EX_!'@N%K=XO"'A>)[7S?LK1Z!`IB\QG:380GR[FEE8XZEV)Y)RUO M`O@EK+^SF\'>%6T\W33FP;P];F`SE`ADV;,;R@"[L9VC'3BNJHH`\C^'W@WQ MII?BSXC>,/'^K>%=5O\`7M96Q\!VWA31Y;2+3/"5J7:QMKCS9',EV9+BY>:1 M-D;%HU5%$8SZY110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`! M1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%% 5%%`!1110`4444`%%%%`!1110!__9 ` end